Transitioning to green hydrogen
Create positive changes in the energy market
Green hydrogen is an exciting and important part of the energy transition. It is playing a key role in the global effort to decarbonise the energy system by helping reduce our reliance on fossil fuels. Bringing green hydrogen into popular use comes with an array of considerations. With new legislation coming into force and evolving government policies, efficiently navigating your legal obligations requires specialist advice.
Our lawyers work with clients at all stages of the green hydrogen lifecycle, including production by electrolysis, transport and storage, and consumption. We can help you identify and overcome a wide range of challenges, from the developing regulatory requirements and government incentive schemes, to project structuring and adoption of new technologies.
Using our legal expertise to help create positive changes in the energy market is what drives us. We’re passionate about working towards net-zero and supporting our clients in achieving their goals. Our approach is creative and we collaborate with developers and investors to explore the issues associated with using green hydrogen. Our expertise spans power generation, heating, transport, industrial processes and manufacturing.
Contact us to find out how we can support your business in the transition to green hydrogen.
- What you need to know about green hydrogen
Green hydrogen is becoming a crucial component in achieving net zero emissions by 2050. As a fast-emerging investment opportunity, it is gaining significant attention. The world's economies are striving for sustainable growth and necessitating an energy transition. Green hydrogen is at the forefront of this shift.
Investor interest in hydrogen-related projects is rapidly increasing across the UK and Europe. These projects range from green hydrogen production, the transport and storage of green hydrogen and the consumption of green hydrogen in the so-called “hard to abate” sectors. All of these initiatives require expert regulatory advice, including legal guidance on project development and navigating the regulatory framework and administrative processes necessary to finance and deliver green hydrogen projects.
- What's on the horizon?
Currently, almost all hydrogen that is produced industrially is grey hydrogen. As it is made from fossil fuels through reforming processes and emissions are released into the atmosphere, it is considered a high-emissions fuel. The demand for grey hydrogen is expected to decrease.
From 2025, most new hydrogen production is expected to be green hydrogen. This is because green hydrogen is likely to become more competitively priced over time and major global economies have made significant decarbonisation commitments that need to be met.
Until 2030, green hydrogen is expected to be used only in traditional applications. This will allow a progressive phase-out of grey hydrogen. However, its use is anticipated to extend into areas that do not have obvious routes to electrification, including steel production, synthetic fuel production, heavy road vehicles, maritime and air transport.
By 2050, the demand for green hydrogen could represent between 73% and 100% of total hydrogen demand. This is equivalent to 125 to 585 million tonnes per annum (MTPA). Some geographical areas, such as the European Union and the United Kingdom, are expected to completely phase out grey hydrogen well before 2050.
- How we can help you
Our specialists can support you at all stages of the green hydrogen life cycle, including advising on:
- The legal and regulatory landscape
- Opportunities and challenges presented by scaling up hydrogen markets
- Developing and financing a green hydrogen project and the current and future use cases
- Current regulatory landscape and the standards and regulations that are required across Europe
- Legal challenges and opportunities for both the developers and funders of hydrogen projects across Europe
- The long-term future for green hydrogen
- Policy aims to the use cases for hydrogen across Europe
- How green hydrogen will feature in the future of sustainable transport
In our Unlocking Green Hydrogen Projects white paper, we explore the key aspects that will determine green hydrogen’s success — defining both the fundamental building blocks and the critical threats that could impede its progress. We also offer practical recommendations for policymakers, investors and industry leaders
Osborne Clarke stands at the forefront of innovation in the green hydrogen industry, working with our clients to pioneer sustainable energy solutions and shape a cleaner future for all. Hugo Lidbetter - Partner, Head of Sustainable Infrastructure
This lifecycle highlights the legal considerations at each lifecycle stage: production, transport and storage, and consumption.
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